India’s primary aluminium manufacturers have demanded an increase of import duty on primary aluminium and aluminium scrap to 10pc from 7.5pc to 2.5pc, respectively, to curb imports and safeguard domestic producers.
The Aluminium Association of India shared that the country imported 2.15mn mt of unwrought aluminium in 2019-2020 despite an installed annual domestic capacity to produce 4.1mn mt aluminium. India’s annual domestic aluminium demand is at 3.7mn mt.
In a letter to the Finance Ministry, the association rued despite adequate domestic supply, India imports 60pc of its primary aluminium consumption. The association said imports from China and the Middle East have surged amid surplus capacity in these countries. The association claims these countries support their aluminium producers through subsidies, lower power tariffs, preferential gas allocation, raw material availability and export tax incentives increasing their competitiveness.
The industry also demanded GST compensation of Rs400/mt coal, to support power-intensive aluminium production.